Will fiscal cliff fears slam your 401(k)?
How to protect your hard-earned money
- Duration 3:11
- Date Nov 10, 2012
How to protect your hard-earned money
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Fears of being -- fiscal -- smacking stocks this week and it comes as we're finding out the average bounced for -- 401K retirement account.
A record high near 76000.
Dollars if congress lets the club hit that's part -- will take ahead don't I don't want to know what shouldn't be doing right now to protect them.
I think they should be doing what I've I've been doing lately that's what more my money at a percentage wise in cash and what you're seeing what 41 -- is rising as more Americans are saving because they're scared of what's going to happen.
Which is good for individual Americans back -- the short term economy.
If it capital gains and dividend tax is raised the -- -- good from the government revenue or not it's -- very bad the stock market if we go over the fiscal cliff.
You know -- that the feeling is that investors are gonna be discouraged from investing in stocks especially those that pay dividends.
Well it may be true but you know it -- its not gonna go over the fiscal cliff is as stupid as congress is they -- they can't avoid this -- got to do something about it I mean.
And they've got to reach across the -- and they -- eventually going to find some solution for this.
But in the meantime you're you're John makes a point about this in the in the sense that there there is.
Of course in 0401 K your of your cash does grow without taxes.
But sooner -- related is stacked and I think that that that the point that you're making his good in the -- to -- but I have to look for something else in the stock market is gonna suffer in the short run I.
It's -- certain thing that does this right certain.
And that's a good point and you know what Tracy out again you know going back to the value of these stocks in our -- -- are going to pound -- that they would -- that's a concern right because we need to be clear that.
Dividends reinvested in a 401K are not taxed so when they figure this out you don't pay dividend tax when your stocks are in a 401K.
When they think this cat and you will right let's be clear -- under the gun here presuming we're going to the -- fund dividend taxes and they are -- got to compromise I just got to be -- radeon you have to believe there will be compromised so let's not forget any time.
Go revisit your 41 K and reallocate -- advice to.
-- Well I think what happened and viewers and all rational people are really in a -- I -- the trying to make.
Long term decisions and trying to follow government that clearly Clinton thinking day -- day if not maybe we do we -- before lucky I think the panel makes the point.
Well taxes hurt wealth creation across the board I think it's gonna result in inflation saying that's why investors need to stop getting out of the -- are getting out of the -- He spent the last five years getting in -- what do you -- people that are discouraged right now.
Write their congressman.
And I don't think that there's going to be a fiscal cliff.
For two reasons one is because of this clip.
This fiscal -- Is incredibly unpopular on both sides of the -- secondly unlike the grand hot Gramm Rudman Hollings -- of 85 in the budget enforcement act of 91.
You don't have strong enforcement provisions in this -- I know it's an inside baseball point but it's very easy for congress to get past this.
I mean the point here that everyone should keep in mind is that the fiscal cliff was a Republican idea because the Republicans want it to extend the debt ceiling and a debt neutral way this was the way they were gonna do it.
Now there everybody saying including the Republicans that's a bad idea to do that when the -- over -- GDP which is exactly argument President Obama was making in 2011.
Julian Epstein thank you for joining us -- great -- again thanks for having me.
-- coming up so they.